Question : Holders of assets can readily sell their financial assets through the mechanism of the financial market. Which function of the financial market is highlighted in the given statement?
Option 1: Facilitating price discovery
Option 2: Mobilization of savings and channeling them into the most productive uses
Option 3: Providing liquidity to financial assets
Option 4: Reducing the cost of transactions
Correct Answer: Providing liquidity to financial assets
Solution : Financial market facilitate easy purchased and sale of financial assets. Holders of assets can really sell their financial assets to the mechanism of the financial market.
Hence, option C is correct.
Question : Financial market facilitate easy purchase and sale of financial assets. Which function of financial market is highlighted in the given statement?
Question : A financial market facilitates transfer the savings from savers to investors. Which function of financial market is highlighted in the given statement.
Question : It provide liquidity to financial assets so that they can easily converted into cash whenever required.Which function of financial market is highlighted in the given statement?
Question : In the financial market householders are suppliers of funds and business firms represent the demand.Which function of financial market is highlighted in the given statement?
Question : Financial market helps to link the savers and the investors by mobilising funds between them. Which function of financial market is highlighted in the given statement?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile